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An iPod that could only play video would be cool, but its not quite apple's style.

A Beand new iPod which was the size of the 4g 5g iPod nano the design would the same as an iPhone 4/4s with a glass back but you could choose which image to present on a digital screen on the back.
The front would be entirely multi-touch the traditional disc wheel would present itself as you scrolled through your media and would disappear when you choose what you would like to watch/listen to.
If you were to watch a movie you would tilt it on its side for fullscreen and if you were to listen to music it would present its self on a side view sort of front row presentation